Charles Faulkner

Why have men like Richard Donchian and Ed Seykota (Chapter 2) been able to teach Trend Following? One answer is found in the field of Neuro-Linguistic Programming, or NLP. One of the best teachers of NLP is Charles Faulkner who speaks with an authority and clarity gained from having taught hundreds of traders how to gain the “mental edge”:

“NLP’s techniques involve moving out negative mental beliefs and replacing them with positive ones. Think of an unpleasant trade . . . As you do that, what happens if you take a breath and go ’aaah,’ push it out and then trade with it? Much better. People go through fifths of scotch trying to get that feeling. When you get agitated, go ’whoosh’ and just step out of it that way and you’ll find that it’s less. Do it again and you’ll be at zero real fast.”—Charles Faulkner[22]